# Supervised Lender License vs Consumer Lender License *Reviewed 2026-05-15* > Some states split consumer lending into a standard license and a supervised license tied to higher rates. Here is how the two compare and which one your rate structure calls for. ## Supervised lender license Authorizes a company to make consumer loans above a state's rate threshold, under enhanced regulatory oversight. ## Consumer lender license Authorizes a company to make consumer loans at or below a state's standard rate ceiling. ## Comparison | Feature | Supervised lender license | Consumer lender license | | --- | --- | --- | | What triggers it | Charging rates above the state's supervised threshold | Lending at or below the standard rate ceiling | | Level of oversight | Enhanced supervision and examination | Standard consumer-lending oversight | | Where the term is used | States that follow a supervised-loan framework | Common across most states' consumer-lending statutes | | Rate authority | Higher permitted rates within statutory limits | Capped at the state's standard ceiling | | Application detail | Often more financial and management disclosure | Standard consumer-lending disclosures | ## Which is right for you - Supervised lender license: Choose the supervised lender license if your consumer loans charge rates above a state's standard ceiling and you can meet the added oversight. - Consumer lender license: Choose the consumer lender license if your consumer loans stay at or below the state's standard rate ceiling. Rates drive the license Several states divide consumer lending into two tiers. A standard consumer lender license covers loans at or below a defined rate ceiling. A supervised lender license, used in states that follow a supervised-loan framework, authorizes higher rates in exchange for enhanced oversight and examination. The dividing line is the rate you charge, so the same lender can need one license in one state and the other in a neighboring state with a different threshold. Because the supervised category carries higher permitted rates, states typically ask for more financial and management disclosure and examine those licensees more closely. If your product sits near a state's threshold, the rate you set effectively chooses your license, which is why mapping each product's rates against each state's ceilings before filing matters. Match the license to your rate sheet Review your rate schedule against the supervised thresholds in every state where you lend. See our supervised lender licensing page or talk with our team about your rate structure. ## Frequently asked questions ### Do all states use the supervised lender category? No. The supervised-loan framework appears in some states but not all. Other states use a single consumer-lending license or different tiers entirely. Confirm the structure in each state. ### What happens if I charge above the threshold without the supervised license? You could be lending outside your license authority, which carries regulatory risk. Match each product's rates to the correct license in every state before you lend.